World Cup of Telecom


Last Thursday, the FIFA World Cup of football began in Russia with a 5-0 win for the host nation over Saudi Arabia. The tournament has seen lots of thrills already with powerhouse nations like Germany, Brazil and Spain having some disappointing performances and tiny nations like Iceland punching well above their weight with a 1-1 draw against Argentina with the great Messi.

This week, since AurorA and Amitel specialize in international telecommunications, we are going to look at competition in that sector among nations, World Cup style.

Our next door neighbour, the U.S.A. is undergoing some rapid changes in their telecom playbook. They have always had a fast, attacking style and recent moves in the commercial and regulatory scene indicate that that is not about to change anytime soon. The FCC has repealed Net Neutrality laws, and the Supreme Court has allowed AT&T to purchase Time-Warner despite objections from the Department of Justice. Now Comcast is looking to swoop in and buy Fox. The biggest service providers in the U.S.A. are bulking up with content to compete against Silicon Valley players like Amazon, Netflix, Apple and Google. They can now provide super bundles of connectivity (Internet and Phone) and their own content can be prioritized (zero rated so it doesn’t count against data caps). They are trying to keep all consumers tied to their offerings to avoid being just ‘dumb pipes” .Will we see that battle move into Canada where cord cutters are continuing to drop their telecom bundles ? Is that is what is truly behind Bell/Telus/Rogers “anti-piracy” crusade ?

It also never pays to under-estimate the giants of Silicon Valley. They all have deep, deep pockets and a desire to dominate all the markets they enter. To them telecom is existential, it is what lies between them and their customers which is why they fought strongly for Net Neutrality and continue to do so in Congress and at the State level. Their calling apps like Skype, WhatsApp, FaceTime, Hangouts etc have taken the voice and messaging market from telcos worldwide. And each of them is quietly exploring Low-Earth Orbit (LEO) satellites and other unique systems to bring Internet access to anywhere on the globe; and conveniently bypass AT&T, Verizon, Bell etc totally from the equation.

India is a fascinating market, ever since the huge disruption brought about by Reliance Jio. In the space of one year, Jio has captured over 100 million customers in India. They brought in a modern network, leveraged new tech like 4G, VoLTE and fiber and brought in disruptive market offers that were consumer friendly like free voice calling and cheap data plans. India ranked 155th in the world for data consumption before the entry of Jio into the market; now it is the biggest consumer of data by volume in the world.

These tactics are being copied in other markets. TPG in Australia recently launched with a new state-of-art network and an offer of 1 Gb a day for free for the first 6 months. It is data only, no voice as they tell you to use WhatsApp or Skype etc if you want to make calls. Will we see the launch of such a consumer friendly competitor here in Canada to shake up the complacency of the incumbents ? Someone who’ll play a quick-strike counter attack ?

It promises to be an exciting month-long World Cup tournament featuring the best from around the globe. International Telecommunications also is in a very exciting phase and will continue to be long after this World Cup ends. So stay tuned, keep coming back to this blog (and my social media sites where I post other tidbits ) as we navigate this journey together.

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